Users Will Win in the End

By Don Reisinger |
Posted 2009-08-05

10 Reasons Why Apple's Battles Will Bolster Competition

Apple is in an enviable position in the tech industry. Its iPhone is a major
hit. Its App Store is quickly becoming an important component of its business.
Everything seems to be going well. But there's one problem with Apple that
could lead to serious trouble down the road: It doesn't know how to play nice
with others. Believe it or not, that could be good for us all.

Earlier this week, word leaked
that Palm filed a complaint with an industry watchdog group that monitors USB
standards. Palm claimed that Apple is "hampering" competition in the
market by not
allowing Palm Pre users to access iTunes. The complaint also discussed how
the Pre makes iTunes think it's an iPod and thus allows users to work with
Apple's software as if it were running on an Apple device.

That news came on the heels of Apple's
decision to block Google Voice, an up-and-coming telephony service from the
search giant. Apple claimed that it denied Google Voice entrance into the App
Store because it offered features too similar to those already in the iPhone.

The
blogosphere exploded in outrage. Apple was getting hit from all sides over
its decision to block the app. And yet, the company stayed silent, waiting as
it always does for the news to blow over. Only, Google Voice hasn't blown over.
A quick search around the Web reveals that people are still upset with Apple
over its decision to block Google Voice. They're also miffed that Steve Jobs
and co. won't play nice with the Pre.

It's good that Apple is facing so much pressure. It's good for consumers. It's
good for the enterprise. It's good for everyone-even Apple itself, although it
refuses to see it that way. Apple has been able to do what it wants for too
long. It has bullied small developers. But now, it's facing some real
competition and, for the first time in a while, it's facing the blogosphere. It's
a three-front war right now. And it could benefit users. Here's why:

1. Competition is goodPalm has a point when it claims Apple is "hampering" competition
in the marketplace. Although I can understand that Apple wouldn't want the Pre,
an iPhone competitor, to access iTunes, Apple would still get a benefit from
that. It might make Pre owners want to buy more songs. They might even fall in
love with iTunes and want some Apple hardware. Everybody wins.

2. Apple has been a bullyIf nothing else, these battles with Google and Palm have highlighted the
fact that if Apple bullies the wrong group, it will face repercussions. How
many times has Apple blocked third-party developers' apps in the App Store for
little or no reason? When it happens, it's forgotten because, to be quite
honest, those developers aren't newsworthy. But Google and Palm are. And they
won't be bullied. That can only be good for consumers.

3. Apple needed pressureIt's about time Apple felt some pressure. Apple has seemed almost above
criticism with its unbroken string of successes with the iPod, iPhone and
iTunes. But if Apple continues to come under pressure for the way it is
wielding its market power, it will eventually realize that it needs to mend its
ways. It can't continue to be so cavalier in its dismissal of complaints-especially if it starts to fall under serious
regulatory scrutiny.

Users Will Win in the End

4. Palm can change thingsI firmly believe that if Palm continues to
pursue its battle with Apple, things could change. More companies might jump on
the bandwagon. More complaints against Apple will come on the heels of Palm's.
Apple will be forced to respond. And in the process, consumers and enterprise
customers could benefit.

5. Apple will respondTo reiterate, if the complaints keep coming, Apple will have to respond
eventually. It can't afford not to. I believe that the company thought the
Google Voice and Palm issue would quickly blow over. It hasn't. Apple needs to
address it before it gets out of hand and allows Palm to really change things.

6. More App Stores?Apple's move to reject applications and to keep competing devices out may
backfire if other vendors set upcompeting app stores that can gain
market share. Palm could welcome all those rejected apps. Google's Android
Market could accept them too. More apps means greater choice for consumers and
a better user experience.

7. Apple is learning a lessonApple's battles with Palm and Google might have taught the company
something important: You can only push companies around for so long before it
causes a backlash. Apple made the wrong choice with Google Voice. It played the
Palm Pre situation improperly. It cost the company valuable mind share. It can't
let that happen again.

8. RelaxationApple might have learned to relax a little when it comes to the App Store.
Sure, some features might be similar, but you know what? There's nothing wrong
with allowing them into the store for consumers to decide if they're
worthwhile. I understand that, in some cases, there are contractual
obligations. But for those instances where there are not, Apple might have
learned during this ordeal that it needs to relax its rules just a little bit.

9. Google isn't to be messed withApple can beat up small developers. But Google is an entirely different
story. It's an extremely popular company. It's bigger than Apple. It also has a
huge following. When you upset Google (as Apple has), it might lead to trouble.
And that's some trouble that Apple doesn't want. If Google decides to challenge
Apple, it would mean more competition and more offerings for users and, in the
end, it's the consumer who wins.

10. The blogosphere can get things doneAs powerful as Google and Palm are, it's the blogosphere that could put
serious pressure on Apple in the future. As long as bloggers are upset with Apple's
practices, the blogosphere will make it a key issue for the rest of the year.
It will pester Apple. It will talk about Apple's foibles in every blog post
about the company. That's extremely powerful. If millions of people across the
globe are inundated with talk of Apple treating companies poorly, it's a
problem-readers might start to believe it.

So, as Apple's battles continue to unfold, it seems that Apple must have
learned some things. When the dust clears, users will benefit.